Fertilizer price fluctuations
create challenges for farmers
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| At Virginia Gold Orchard in Natural Bridge, chicken litter is used as fertilizer. In the wake of hard economic times, the price of animal manure has fallen. (ALEXANDRA SCAGGS/The Rockbridge Report) |
Fertilizer prices have recently fallen from historic highs nationwide, and Rockbridge County farmers could reap the benefits, local farmers and observers say.
But because of widespread volatility in the price of commodities, many also say there is no guarantee.
The American Farm Bureau Federation reported early this month that fertilizer prices had fallen for the first time in six years. And Rockbridge County Extension Agent Jon Repair said last week that prices for nitrogen and phosphorus, two important fertilizer components, had fallen about 40 percent.
But Marc McElroy, assistant manager for the Rockbridge Farmers Cooperative, said he watched prices creep up again last weekend.
“We’re coming into a time in the country where everything is volatile, and fertilizer is starting to follow that,” he said. “In the past 10 years, fertilizer’s been moving at a snail’s pace in volatility. In the past three weeks, it’s been like a rollercoaster. It’s a little bit frightening to me.”
McElroy blames commodities investors for the current rise.
“People speculate in markets they don’t understand,” he said. “It’s not a fun game to watch happen.”
Earlier this week at the Farmers Co-op nitrogen and phosphorus both cost 52 cents per pound, down from $1.24 per pound for nitrogen and $1.37 per pound for phosphorus this time last year. Potash, a mix of potassium and soil, cost 92 cents per pound, up from 72 cents per pound a year ago.
The price of potash remains close to its all-time high, said Repair. He attributed that to increased demand from China, which can produce its own nitrogen and phosphorus, but not potash.
Repair said that because of the recent high price of fertilizer, many farmers have switched to animal manure, such as poultry litter.
“Last year, there was no doubt that litter was a lot cheaper. Now, the margin between the two is being compressed,” he said, adding that litter is still “the better value for the dollar spent.”
Paul Estabrook, who uses chicken litter as fertilizer at his Virginia Gold Orchard in Natural Bridge, says he has seen animal manure prices fall as well. Estabrook said he hopes that lower fertilizer costs will help him cover his fixed costs, like irrigation and pesticides, for his organic Asian pear operation.
Walker Nelson, who owns a haying operation and a cattle farm -- Alpine Farm LLC and Alpine Farm, both in Natural Bridge Station -- said that lower prices would help him break even.
“While I don’t know that it will very much change the price that I sell my product for, it will certainly make it more likely that I’ll cover the cost of [raising and] selling hay,” he said.
As they cope with fluctuating fertilizer prices, area farmers are still dealing with remaining damage after a third consecutive year of drought. The Rockbridge County Board of Supervisors in September voted unanimously to request that the area be declared a drought disaster.
Repair said the Rockbridge area needs more precipitation this winter, whether rain or snow, to alleviate the drought.
“It’s still going to be a challenge, even with lower fuel prices, lower fertilizer prices,” he said. “It’s going to be a sharp producer that’s going to make that work.”
Produced by
Washington and Lee
journalism students.
Lead Supervisors:
Prof. Brian
Richardson
Prof. Indira Somani
Editing supervisor:
Prof. Lisa Tracy
Technical supervisor: Michael Todd